Payments on termination

New and updated

• Type:

  Employment law cases

  Case roundup: company car policy and sex discrimination

  This week's case roundup from Eversheds, covering company car policy and sex discrimination.

• Type:

  FAQs

  Can an employer dismiss an employee without notice if it pays them for the duration of the notice period?

• Type:

  FAQs

  How should an employer work out the salary owed to an employee on termination of employment?

• Type:

  FAQs

  What other payments might employees be owed on termination of employment other than their salary?

• Date:

  1 March 2001

  Type:

  Employment law cases

  Pay in lieu of notice: Unpaid pay in lieu of notice was not recoverable as a debt

  Where a contract of employment provided that "the employer may make a payment in lieu of notice to the employee" and the employer chose to summarily dismiss the employee without cause or pay in lieu of notice, the employee's claim was for damages for wrongful dismissal, subject to his duty to mitigate his loss, and not for a sum due under the contract, holds the Court of Appeal, by a majority, in Cerberus Software Ltd v Rowley.

• Date:

  15 September 1999

  Type:

  Employment law cases

  Breach of contract: Employer was liable to make payment in lieu of notice without deduction for mitigation

  A provision of a contract of employment, which entitled the employer to terminate the contract either by giving the employee notice or summarily on paying him in lieu of notice, did not give the employer a third option of giving no notice and making no, or less than full, payment, holds the EAT in Cerberus Software Ltd v Rowley.

• Date:

  15 June 1998

  Type:

  Employment law cases

  Contracts of employment: Employee entitled to notice pay despite working for competitor

  An employee's contract of employment continued after an exchange of letters between the employee, giving one month's notice of termination, and her employer, confirming that it did not want her to work out her notice period and that her salary would be paid in lieu at the end of the notice period, holds the Court of Appeal in Hutchings v Coinseed Ltd.

• Date:

  1 October 1996

  Type:

  Employment law cases

  Deductions from wages: Individual notification of term authorising deductions required

  The posting in a factory of a notice which stated that accrued holiday pay would not be given to employees dismissed for gross misconduct did not amount to the requisite written notification to the workers of a contractual term authorising a deduction from their wages, holds the EAT in (1) Kerr v The Sweater Shop (Scotland) Ltd (2) The Sweater Shop (Scotland) Ltd v Park.

• Date:

  1 April 1992

  Type:

  Employment law cases

  Wages Act: Pay in lieu of notice not covered by Wages Act

  In Delaney v Staples t/a De Montfort Recruitment, the House of Lords holds that a payment in lieu of notice, paid by an employer when terminating employment without notice, is not "wages"; and so cannot be the subject of a complaint to an industrial tribunal under the Wages Act 1986.

• Date:

  25 January 1991

  Type:

  Employment law cases

  Wages Act: Pay in lieu of notice is not "wages"

  In the first Wages Act case to come before the Court of Appeal - Delaney v Staples t/a De Montfort Recruitment - the Court rules that a payment in lieu of notice is not "wages" and so cannot be the subject of a complaint under the Act.